Office Depot (ODP, $3.27) beats Q4 earnings expectations, shares jump +9%
Office Depot shares climbed +9% Wednesday, after the company reported better-than-expected fourth quarter earnings.
The office supply retailing company reported adjusted earnings of 9 cents a share, exceeding analysts' expectations of 8 cents.
Revenue for the quarter came in at $2.67 billion, higher than $2.58 billion of the year-ago quarter. However, comparable same-store sales (for stores open at least a year) fell -5%. On the other hand, revenue from the firm’s services business surged +34%, with the growth largely driven by the divisional output of CompuCom (the IT firm that Office Depot acquired in 2017).
For the full-year 2018, Office Depot sales of $11 billion were +8% higher than 2017’s $10.24 billion. Net income of $99 million, however, was lower compared to the preceding year’s $146 million.
For the full year 2019, the company expects to generate sales of about $11.1 billion.
ODP's Stochastic Oscillator entering oversold zone
The Stochastic Oscillator for ODP moved into oversold territory on April 23, 2025. Be on the watch for the price uptrend or consolidation in the future. At that time, consider buying the stock or exploring call options.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ODP's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 23, 2025. You may want to consider a long position or call options on ODP as a result. In of 95 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ODP just turned positive on April 09, 2025. Looking at past instances where ODP's MACD turned positive, the stock continued to rise in of 48 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ODP advanced for three days, in of 287 cases, the price rose further within the following month. The odds of a continued upward trend are .
ODP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ODP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ODP entered a downward trend on April 17, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.745) is normal, around the industry mean (10.798). P/E Ratio (14.991) is within average values for comparable stocks, (35.784). Projected Growth (PEG Ratio) (0.661) is also within normal values, averaging (2.738). ODP has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (0.268) is also within normal values, averaging (19.925).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. ODP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ODP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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General Information
a provider of office products, services and solutions
Industry SpecialtyStores